ECB Decision, Relief Bill Cleared, Hawkish Asia Bets: Eco Day

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Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • European Central Bank officials will decide Thursday whether rising bond yields are such a threat to the region’s virus-stricken economy that they need to come up with a stronger response; meanwhile, its forecasts are likely to view any rise in inflation as fleeting
  • President Joe Biden’s $1.9 trillion Covid-19 relief bill cleared its final congressional hurdle and will go to the president for his signature
  • Serbia, which escaped 2020 with one of Europe’s smallest economic contractions, will probably keep borrowing costs on hold as the government prepares to expand coronavirus relief
  • A key measure of U.S. consumer prices rose less than expected in February as costs of used vehicles, clothing and transportation services declined from a month earlier, suggesting broader inflationary pressures remain tame
  • You’d think a world tiptoeing its way out of the coronavirus pandemic might only be good news for governments and economies -- but the consequent surge in the price of energy, metals and crops is highlighting the strengths of some and the vulnerabilities of others
  • Bank of Japan officials are looking at ways to enable bond yields to move around more as they try to improve the functioning of a bond market dominated by the central bank, according to people familiar with the matter
  • Australia’s bid to reach a free-trade deal with Europe just got a little harder, due to its refusal to set a hard target to reach net-zero carbon emissions
  • Global bonds have been punished this year as traders have brought forward bets on higher interest rates. Investors looking for some relief from the rout should probably avoid India, South Korea, Malaysia and Thailand
  • The huge increase in Taiwan’s foreign-exchange interventions could lead to it being labeled a currency manipulator by the U.S., the island’s central bank governor said, but he insisted the designation is unlikely to have any immediate impact

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